PART VI. 
REGULATION



 



§432:2-601  Valuations.  (a)  Standards
of valuation for certificates issued prior to one year after July 1, 1988,
shall be those provided by the laws applicable immediately prior to July 1,
1988.



(b)  The minimum standards of valuation for
certificates issued on or after one year from July 1, 1988, shall be based on
the following tables:



(1)  For certificates of life insurance the
Commissioner's 1941 Standard Ordinary Mortality Table, the Commissioner's 1941
Standard Industrial Mortality Table, the Commissioner's 1958 Standard Ordinary
Mortality Table, the Commissioner's 1980 Standard Ordinary Mortality Table or
any more recent table made applicable to life insurers.



(2)  For annuity and pure endowment certificates, for
total and permanent disability benefits, for accidental death benefits and for
noncancellable accident and health benefits, such tables as are authorized for
use by life insurers in this State.



All of the above shall be under valuation methods
and standards (including interest assumptions) in accordance with the laws of
this State applicable to life insurers issuing policies containing like
benefits.



(c)  The commissioner may, in the
commissioner's discretion, accept other standards for valuation if the
commissioner finds that the reserves produced thereby will not be less in the
aggregate than reserves computed in accordance with the minimum valuation
standard herein prescribed.  The commissioner may, in the commissioner's
discretion, vary the standards of mortality applicable to all benefit contracts
on substandard lives or other extra hazardous lives by a society authorized to
do business in this State.



(d)  Any society, with the consent of the
commissioner of insurance of the state of domicile of the society and under
such conditions, if any, which the commissioner may impose, may establish and
maintain reserves on its certificates in excess of the reserves required
thereunder, but the contractual rights of any benefit member shall not be
affected thereby. [L 1987, c 347, pt of §2]



 



Revision Note



 



  "July 1, 1988" substituted for "the effective
date of this article".